Industrial Relations Commission of New South Wales CITATION : State Wage Case 2000 (No 2) [2000] NSWIRComm 104 Labor Council of New South Wales The Minister for Industrial Relations The Employers' Federation of New South Wales Australian Business Industrial The Australian Retailers' Association, New South Wales PARTIES : The Australian Industry Group The Catholic Commission for Employment Relations The Local Government Association of New South Wales The Shires Association of New South Wales The Motor Traders' Association of New South Wales The State Chamber of Commerce and Industry (Industrial Relations) Association The New South Wales Road Transport Association Inc. FILE NUMBER: IRC 1873 & IRC 1930 of 2000 CORAM: Wright J President; Walton J Vice-President; Hungerford J; Harrison DP; Boland J; McKenna C CATCHWORDS : State Wage Case - Wage Fixation - Re-listing - Amendment to Principle 8(d) to remove reference to June 1998 and 1999 State Wage Case Decisions and to insert reference to State Wage Case Decision 2000 - Orders made - Direction to Industrial Registrar LEGISLATION CITED : Industrial Relations Act 1996 s51(3) s51(4) CASES CITED : State Wage Case 2000 [2000] NSWIRComm 83 HEARING DATES: 06/20/2000 EXTEMPORE JUDGMENT DATE : 06/20/2000 Mr C Christodoulou for Labor Council of New South Wales Dr S Bridgeford for the Minister of Industrial Relations Mr T McDonald for the Employers' Federation of New South Wales LEGAL REPRESENTATIVES: Mr D Grozier for Australian Business Industrial Mr Krayem for Australian Retailers' Association, New South Wales Ms M Das for the Australian Industry Group New South Wales Branch; the Catholic Commission for Employment Relations; the Local Government Association of New South Wales; the Shires Association of New South Wales; the Motor Traders' Association of New South Wales; the State Chamber of Commerce and Industry (Industrial Relations) Association; and the New South Wales Road Transport Association Inc. JUDGMENT: - 1 - INDUSTRIAL RELATIONS COMMISSION OF NEW SOUTH WALES FULL BENCH CORAM: WRIGHT J, President WALTON J, Vice President HUNGERFORD J HARRISON DP BOLAND J McKENNA C Tuesday 20 June 2000 Matter No IRC 1873 of 2000 STATE WAGE CASE 2000 Summons to Show Cause - Commission on its own initiative pursuant to Part 3 of Chapter 2 of the Industrial Act 1996 Matter No IRC 1930 of 2000 STATE WAGE CASE Application by Labor Council of New South Wales re Award Safety Net Review May 2000 SUPPLEMENTARY DECISION OF THE COMMISSION (extempore) 1 In the course of proceedings before this Commission in the State Wage Case 2000 [2000] NSWIRComm 83, the various parties put forward proposals relating to the form and content of the Wage Fixing Principles. 2 In relation to Principle 8(d), which sets out the absorption clause to be inserted into all awards, it was proposed by parties other than the Labor Council of New South Wales that the clause should include reference to the State Wage Cases of June 1998 and 1999 as well as 2000. The Labor Council proposed that Principle 8(d) should refer to the State Wage Cases of June 1999 and June 2000. 3 In the decision handed down on 30 May 2000, reference in Principle 8(d) to the State Wage Case 2000 was omitted and it would have been necessary, in our view, to issue an erratum to correct this omission because, contrary to the intention, the absorption clause to be inserted in all awards would not have provided for absorption of the increase granted under the State Wage Case 2000 decision. 4 However, on 14 June 2000, Australian Business Industrial, a party to the State Wage Case 2000 proceedings, wrote to the Acting President suggesting the Commission may wish to consider an amendment to Principle 8(d) to delete reference to both the June 1998 and 1999 State Wage Case decisions and substitute a reference only to the State Wage Case 2000 decision. This being at variance with what was put by the parties in the proceedings, we have found it necessary to re-list the State Wage Case 2000 to allow all parties to make submissions on the modifications they consider necessary to Principle 8(d). 5 Having heard the parties this morning, we propose to remove the references to the State Wage Cases of June 1998 and 1999 from Principle 8(d) and substitute a reference to the State Wage Case 2000 decision. This is in conformity with the position taken by all parties this morning and with the National decision. Moreover, it makes good sense by avoiding the cumbersome reference to successive State Wage Case decisions. It also avoids the prospect of any confusion arising in the interpretation of the absorption clause in awards about which wage fixing principles apply at any given time. 6 Principle 8(d) should now read as follows: "(d) The following clause must be inserted in the award: 'The rates of pay in this award include the adjustments payable under the State Wage Case 2000. These adjustments may be offset against: (a) any equivalent overaward payments, and/or (b) award wage increases since 29 May 1991 other than safety net, State Wage Case, and minimum rates adjustments.' The above clause will replace the offsetting clause inserted into awards pursuant to the Principles determined in the State Wage Case 1999 judgment." 7 Pursuant to s 51(4) of the Act, the State Wage Case 2000 decision and orders are varied accordingly on and from 30 May 2000 until further order of the Commission. 8 We are aware that, since 30 May 2000, a number of awards have already been varied to include the superseded absorption clause in Principle 8(d). In respect of those awards, we make a general order, pursuant to s 51(3) of the Act, varying all such awards by deleting the superseded clause and inserting the new clause set out in this decision. This variation will take effect in those awards from the date each of them was varied to incorporate the outcomes of the State Wage Case 2000 decision. We direct the Industrial Registrar to make the necessary variations to the relevant awards when they come before the Registrar for settlement. ORDERS 9 The Commission makes the following orders: (1) Pursuant to s 51(4) of the Industrial Relations Act 1996, the Full Bench of the Industrial Relations Commission of New South Wales orders that the Commission's Wage Fixing Principles as set out in Annexure B to the State Wage Case 2000 decision [2000] NSWIRComm 83, be varied by deleting Principle 8(d) and inserting in lieu thereof the following: "(d) The following clause must be inserted in the award: 'The rates of pay in this award include the adjustments payable under the State Wage Case 2000. These adjustments may be offset against: (a) any equivalent overaward payments, and/or (b) award wage increases since 29 May 1991 other than safety net, State Wage Case, and minimum rates adjustments.' The above clause will replace the offsetting clause inserted into awards pursuant to the Principles determined in the State Wage Case 1999 judgment." (2) Order (1) shall take effect on and from 30 May 2000 until further order of the Commission. (3) Pursuant to s 51(3) of the Industrial Relations Act , the Commission makes a general order in respect of each of the awards which has been varied since 30 May 2000 to include the superseded Principle 8(d) to further vary those awards by deleting the superseded provision and replacing it with the provision set out in Order (1) hereof. (4) Order (3) shall take effect from the date each award was varied to incorporate the outcomes of the State Wage Case 2000 decision. DIRECTION 10 In respect of the awards referred to in Orders (3) and (4) hereof, the Full Bench of the Industrial Relations Commission of New South Wales directs the Industrial Registrar to make the necessary variations flowing from those orders when each of the awards is presented to the Registrar for settlement. 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